A recession is a significant decline in economic activity that lasts for an extended period, typically visible in various indicators such as GDP, employment, and consumer spending. It often occurs when there is a decrease in demand for goods and services, leading to reduced production and job losses. During a recession, businesses may struggle to maintain profits, which can result in layoffs and higher unemployment rates. Governments and central banks often respond with measures like lowering interest rates or increasing public spending to stimulate the economy and encourage growth.